Piramal Enterprises Q4 Results FY2023, Loss at Rs. 209 crores

On 5th May 2023, Piramal Enterprises announced its quarterly results for the last quarter of FY2023.

Piramal Enterprises Financial Highlights:

- The company reported its Net Interest Income for Q4FY2023 at Rs. 1128 crores, down by 4% YoY.
- Loss before tax stood at Rs. 207 crores for Q4FY23, a drop of 18% YoY.
- Net loss was reported at Rs. 209 crores, a drop by 2% YoY.

Piramal Enterprises’ Retail Business:

- Retail AUM grew 49% YoY to Rs 32,144 Crores, contributing 50% to the overall AUM mix
- Quarterly disbursements grew 34% QoQ and 361% YoY to Rs. 6,828 Crores. 
- Housing disbursements grew 309% YoY to Rs 2,412 Crores. 
- Disbursement yields stood at 14.2% for Q4FY23.
- 404 branches serving 515 districts in 26 states.
- Customer franchise now stands at about 3 Million; Active customers crossed 1 Mn. 
- More than 4 lakh new customers were acquired during the quarter.

Piramal Enterprises’ Wholesale Business:

- Wholesale 1.0* AUM reduced by 33% YoY to Rs 29,053 Crores. 
- GNPA ratio reduced to 3.8% in Q4FY23 from 4% in Q3FY23. 
- Provision Coverage Ratio of Wholesale AUM is 10% in Q4FY23. 
- Stage 2 + 3 AUM reduced by 39% QoQ to Rs. 6,374 Crores from Rs 10,369 Crores in Q3FY23. 
- Concluded 4 stressed asset monetization transactions in Q4FY23, through a combination of asset sale and ARC deals.

Piramal Enterprises’ Robust Liability Management:

- Well-matched ALM with positive gaps in all buckets. 
- Due to a strong balance sheet and healthy liability mix, the average borrowing cost reduced to 8.6% in FY23 from 9.6% in FY23. 
- 59% of liabilities are fixed in nature

Commenting on the results, Ajay Piramal, Chairman, of Piramal Enterprises Ltd., said, “We are pleased with our resilient performance amid macroeconomic and geopolitical headwinds. India continues to remain a relative “bright spot” in the world and will likely contribute significantly to global growth in the coming years. 
In Retail, we have achieved substantial growth and this business now contributes to 50% of our AUM. We are consciously pivoting to a technology-led multi-product strategy to continue building a large diversified NBFC. As we continue to expand our retail lending business, we are also investing in manpower, branch infrastructure, technology, and analytics for its future growth.
In Wholesale, we have reduced our Wholesale 1.0* AUM by 33% YoY. Our Stage 2 + 3 AUM has reduced by 39% QoQ and we are focused on further bringing these down. We remain focused on ensuring sustained value creation for all stakeholders.”